Predicting Customer Segment

Loading and Pre-processing

Calculate the RFM scores:

Modelling


Performing clustering analysis on the customer segments 1-5

Procedure:

For customer Segment = 1

Optimal no of clusters: 6


For customer Segment = 2

Optimal no of clusters: 5


For customer Segment = 3

Optimal no of clusters: 3


For customer Segment = 4

Optimal no of clusters: 2


For customer Segment = 5

Optimal no of clusters: 2

But it's hard to visualize the clusters in the above plot


Analyzing the clusters for Segment = 2

Observations: